Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers C > Headlines for Carestream Health, Inc. > News item |
S&P trims Carestream Health
Standard & Poor's said it lowered its corporate credit rating on Carestream Health Inc. to B from B+ and removed the rating from CreditWatch.
The outlook is stable.
At the same time, S&P affirmed the B+ issue-level rating on Carestream's $2 billion first-lien debt, which comprises a $150 million revolver and a $1.85 billion first-lien term loan. The recovery rating on this debt is 2, indicating an expectation of substantial (70%-90%) recovery in a payment default scenario.
S&P also affirmed its B- issue rating on the company's $500 million second-lien term loan. The recovery rating on this debt is 5, indicating an expectation of modest (10%-30%) recovery in a payment default scenario.
"We expect the company to achieve low-single-digit revenue growth in the next 12 months because modest growth in the company's nonfilm business should continue to offset the gradual decline of film products revenues," said S&P credit analyst Svetlana Olsha in a news release.
"We believe that the company will be able to sustain high-teen EBITDA margins, which should support continuing good free cash flow generation in excess of $150 million annually."
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.